Highlighting Permit and Development Risks in Mining Projects

Ever notice that some people like to highlight permit/development risks in areas or commodities they don’t own but want to obfuscate the truth in areas they have investments?

— Kevin Bambrough (@BambroughKevin) April 1, 2023

Fact is ALL mining projects have material permit and development risk. I’ve been blindsided by this many times in my investment career. Current local leader for it.. election comes. Someone runs anti development. Project is toast for another election cycle.

— Kevin Bambrough (@BambroughKevin) April 1, 2023

Or things look good and you hear all the right things from local leaders (that often have been financially incentivized) but when the final deal is tabled to a community vote and it fails. Especially when environmental groups show up and stir up a hornets nest.

— Kevin Bambrough (@BambroughKevin) April 1, 2023

I personally thought for sure economic sharing and impact benefits would be sorted out at Jabaluka. Given that ERA/RIO was already mining there, employing and paying royalties. But amazingly the tribal leaders theres convinced the community that over all it was a negative

— Kevin Bambrough (@BambroughKevin) April 1, 2023

The royalty checks created a culture of dependency where many people just waiting for the cheques and hit the liquor store. Alcoholism was prevalent and people viewed the environmental risk as being too high for the long term

— Kevin Bambrough (@BambroughKevin) April 1, 2023

They focused on the fact they wanted to be in a beauty natural place for many generations to come and believed they must be good stewards of the sacred lands. So shut it all down they did. At one point last cycle we had probably well over $50mln in ERA

— Kevin Bambrough (@BambroughKevin) April 1, 2023

The uranium price when 10x+ and ERA got us next to nothing. (Despite producing and having other assets)

Anyhow. Sometimes the best assets in the world just get vetoed locally.

— Kevin Bambrough (@BambroughKevin) April 1, 2023

I could go on and on with other examples of stories were we got burned. But I like remembering the successes. And many times we invested in areas that currently opposed but we saw change coming.

— Kevin Bambrough (@BambroughKevin) April 1, 2023

Few people really want to mine.. seriously. Most communities don’t want a hole in the ground and a mess on the surface no matter how small. But economics matter. People need to feed their families and often good projects that are rather remote with a solid mine plan

— Kevin Bambrough (@BambroughKevin) April 1, 2023

Get the go ahead. But uranium and water tables don’t mix… that’s for sure. No doubt uranium mines are the most difficult assets to permit of all commodities. Part of the reason the price will be going ballistic in due course. Delays are the norm. Permit risk kills investment

— Kevin Bambrough (@BambroughKevin) April 1, 2023

And you can fool retail investors for periods of time but the big institutional investors and lenders won’t be writing big mine financing cheques until all i’s are dotted and t’s crossed on full final permits and that includes even road block protests.

— Kevin Bambrough (@BambroughKevin) April 1, 2023

When a local community decides to shut down a mine… stock takes a nasty dump. Mining companies can’t just ride rough shot over local communities anymore. And the game of taking care of a few in the community to win votes is ending.

— Kevin Bambrough (@BambroughKevin) April 1, 2023